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Northwest's stock rises early in 1st day on NYSE [Detroit Free Press]
Knight Ridder/Tribune "Business News "
May 31--UPDATED AT 11:03 A.M.
Northwest's Airlines new stock started its run on the New York Stock Exchange by going up this morning, the first day of trading for the carrier, which left Chapter 11 bankruptcy protection today.
Northwest's new shares opened at $24.97 this morning on the New York Stock Exchange and rose to $25.30 in the first hour of trading.
Northwest's old shares have been cancelled.
Northwest CEO Doug Steenland, joined by more than a dozen Northwest employees, rang the opening bell to celebrate the company's bankruptcy exit.
"Today is a landmark day in the 81-year history of Northwest Airlines," Steenland said in a statement. "We have successfully repositioned the company as a stronger, globally focused airline with a great route network, a revitalized fleet, a competitive cost structure and a recapitalized balance sheet."
Since filing for bankruptcy protection in September, 2005, Northwest overhauled its financials by shedding $4.2 billion in debt and $2.4 billion in costs.
Eagan, Minn.-based Northwest becomes the last major carrier to leave bankruptcy in a string of airline restructurings that saw United Airlines, Delta Air Lines and US Airways file and emerge from Chapter 11.
"Going forward, we intend to build on our core assets and increase our focus on our customers and employees," Steenland said.
Steenland also said the airline plans to spend at least $50 million this year to improve the travel experience on Northwest.
As part of its restructuring, the airline has ordered 72 new planes, each with 76 seats, for two of its commuter carriers, Mesaba Airlines and Compass Airlines. Northwest plans to introduce the first of those planes into Mesaba's fleet next week.
Contact JEWEL GOPWANI at 313-223-4550 or jgopwani@freepress.com.
To see more of the Detroit Free Press, or to subscribe to the newspaper, go to http://www.freep.com
Copyright (c) 2007, Detroit Free Press
Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
Northwest's reorganization jolts investors: Bargain shares are worthless now [Detroit Free Press]
Knight Ridder/Tribune "Business News "
May 31--Anthony Hicks thought he was getting a bargain when he saw Northwest Airlines stock trading for $1.70 per share.
Tempted by that low price, the 39-year-old Detroiter bought 2,000 shares earlier this year, knowing that the airline was restructuring in bankruptcy. It was in bankruptcy that Northwest's stock had skyrocketed from 60 cents to $7.50 in January, on speculation that the company would merge with another airline.
Hicks saw that surge and hoped to catch it on a second wave.
There was no second wave. What Hicks didn't know was that those Northwest shares would be worthless the day the company emerged from bankruptcy.
That day is today. After 20 months of shedding billions of dollars in debt and costs, Northwest is set to leave bankruptcy protection.
The airline had warned since it filed for bankruptcy in September 2005 that its stock could be cancelled.
Today the airline's new stock hits the New York Stock Exchange, where Northwest CEO Doug Steenland is expected to ring the opening bell.
With that ring, a lesson sinks in for Hicks and others who bought Northwest at rock-bottom prices: "Don't mess with any stocks when a company is going through bankruptcy," Hicks said.
Portfolio manager David Sowerby of Loomis Sayles & Co. has a message when it comes to investing in companies reorganizing in Chapter 11: buyer beware. Companies going through bankruptcy often sell for less than $1 share but trade in lightly regulated over-the-counter markets.
"Let's put it in airline terms. If you're handling your own investments and you're flying without a pilot, it's probably not wise to be buying bankrupt companies," Sowerby said.
After Chapter 11, companies pay all creditors who are in line ahead of shareholders, and there's usually nothing left for those who own stock, said George Putnam, editor of the Turnaround Letter. But, Putnam said, in restructuring industries with big names like Northwest, speculators can move these cheap stocks up.
"Because the bankruptcy stocks can be very volatile, if you're a short-term trader and willing to take on a fairly high level of risk you can make money at it," he said. "There is a lot of luck involved, too."
Luck may have played a part in Terri Trogen's gains on Northwest shares.
The 47-year-old dentist, who lives near Minneapolis, put down $4,700 last fall to buy 10,000 shares at 47 cents a share.
After that, speculation that Northwest might merge with another airline -- after US Airways made a bid to buy Delta, also in bankruptcy -- sent Northwest's shares from 60 cents in October 2005 to an intra-day high of $7.50 in January of this year.
By the time the stock hit $6, Trogen sold. She made $55,300.
A couple of months later, she tried again, spending $1,000 to buy 10,000 shares, this time at 10 cents a share.
"I just thought I'd take another shot at it and see what happens," she said.
Last week, those shares were worth $100. Today, they're worth nothing.
Did Trogen learn anything?
"Yeah," She laughed. "Don't double dip."
Contact JEWEL GOPWANI at 313-223-4550 or jgopwani@freepress.com.
To see more of the Detroit Free Press, or to subscribe to the newspaper, go to http://www.freep.com
Copyright (c) 2007, Detroit Free Press
Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
I already told him that at 10:00 this morning.
Pple don t ever listen
don t know if they can read
geeeez
MK
50 cent hope you sell your shares.They will be worth nothing tomorrow!
NWACQ SHARES CANCELLED AT THE BELL! It's on the daily list.
YES even at a loss
tomorrow you will have lost all your money
do it
it will not trade again
believe me
MK
so do i sell all my shrs
Yes shares cancelled
new symbol NWA on NYS
MK
I don't understand how the bankrupt symbol can be trading at the same time as their new symcol NWA on the NYSE??
puffyk Put it this way I wouldnt buy this stock even with your money and someday poof! Will stop trading and the stock will be worthless. My take is stay away from this one.
puffyk Ya both symbol NWA and NWACQ r the same company, but the old shares NWACQ will be cancel at somepoint and the new shares NWA will be the ones to buy if u want to invest in northwest.
Hello
I am a little confused on this stock. Is NWACQ going to cease to exist? NWA is traded on NYSE and this one on OTCBB. Are they the same company?
Over 50% gain today. Trying to figure out what to do.
Thanks!
Gee! They sure r milking this one. I dont own any but they will be worthless anytime soon. Does anyone here own any?
Wow want a bumer, oh well it happens. Lost almost all my postion maybe 90% of it. Never touching this POS again.
The old shares of Northwest will be worthless, the company said
End of June so they say
Look like the end of this symbol is about done and the new symbol is a coming.
LOL@anyone buying this stock, this is the price you pay
I flipped it one day, would never hold this stock to wake up the next day to see it down the way it is today
Learn what the Q means people.
Never mind! This stock is off my list!...
Great day here. How high is going tomorrow? TIA..
Hey JJ I got my order in at .035.
its going to $27.00 and all current shares will be worth nothing
Could be a while. Plan still has to be approved by the bankruptcy court and then once it's approved, they'll let it trade several more days before they will be cancelled.
JJ
Posted by: brixsus
In reply to: JJSeabrook who wrote msg# 54
Date:5/9/2007 1:29:37 PM
Post #of 57
JJSEABROOK
yes, i am aware of this but WHEN?
now or better say Monday already
JJSEABROOK
yes, i am aware of this but WHEN?
Your STOCK will be CANCELLED for NO CONSIDERATION!
Northwest added that upon the effective date of its Plan of Reorganization, the OUTSTANDING COMMON STOCK, currently traded under the ticker symbol NWACQ.PK, and the preferred stock of the company will be cancelled for no consideration, and, therefore, the company's existing stockholders will no longer have any interest as stockholders in the company.
Northwest Airlines Announces Unofficial Results of Plan of Reorganization Voting
Business Wire "US Press Releases "
EAGAN, Minn.--(BUSINESS WIRE)--
Northwest Airlines Corporation (Pink Sheets:NWACQ) announced today that the preliminary tally of votes indicates that its Plan of Reorganization has been approved overwhelmingly by its creditors.
The unofficial vote tally indicates that 96.9 percent of the airline's creditors who voted, representing 98.4 percent of the dollar amount of the claims that voted, approved the Northwest plan. The final voting results will be filed late this week with the U.S. Bankruptcy Court for the Southern District of New York, the court overseeing Northwest's restructuring.
Doug Steenland, president and chief executive officer of Northwest Airlines, said, "We appreciate our creditors' confidence in the Northwest Plan of Reorganization, which provides creditors with a stake in Northwest Airlines going forward and represents a substantial recovery on their unsecured claims."
"Today's creditor approval is another step in Northwest's efforts to complete its restructuring next month and to move forward as a strong, fully-competitive airline. In recent weeks, we have announced the composition of our new board of directors, indicated a desire to list our new common stock on the New York Stock Exchange and reported a first quarter profit, excluding unusual and reorganization items, for the first time since 1998."
A confirmation hearing on the airline's Plan of Reorganization is scheduled to begin on May 16.
Northwest received Bankruptcy Court approval of its Disclosure Statement on March 31 and was authorized by the court to solicit creditor approval of its plan. Creditor voting ended May 7.
Northwest Airlines has filed an application with the New York Stock Exchange to trade its new common stock under the ticker symbol "NWA" after the airline emerges from Chapter 11 bankruptcy protection.
Northwest added that upon the effective date of its Plan of Reorganization, the outstanding common stock, currently traded under the ticker symbol NWACQ.PK, and the preferred stock of the company will be cancelled for no consideration, and, therefore, the company's existing stockholders will no longer have any interest as stockholders in the company.
FORWARD-LOOKING STATEMENTS
Certain of the statements made in this news release are forward-looking and are based upon information available to the Company on the date hereof. The Company, through its management, may also from time to time make oral forward-looking statements. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company is hereby identifying important factors that could cause actual results to differ materially from those contained in any forward-looking statement made by or on behalf of the Company. Any such statement is qualified by reference to the following cautionary statements. The Company believes that the material risks and uncertainties that could affect the outlook of an airline operating under Chapter 11 and in a global economy include, among others, the ability of the Company to continue as a going concern, the ability of the Company to obtain and maintain any necessary financing for operations and other purposes, the ability of the Company to maintain adequate liquidity, the ability of the Company to absorb escalating fuel costs, the Company's ability to obtain court approval with respect to motions in the Chapter 11 proceedings prosecuted by it from time to time, the ability of the Company to develop, confirm and consummate a plan of reorganization with respect to its Chapter 11 proceedings, risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm a plan of reorganization, to appoint a Chapter 11 trustee or to convert the cases to Chapter 7 cases, the ability of the Company to obtain and maintain normal terms with vendors and service providers, the Company's ability to maintain contracts that are critical to its operations, the ability of the Company to realize assets and satisfy liabilities without substantial adjustments and/or changes in ownership, the potential adverse impact of the Chapter 11 proceedings on the Company's liquidity or results of operations, the ability of the Company to operate pursuant to the terms of its financing facilities (particularly the related financial covenants), the ability of the Company to attract, motivate and/or retain key executives and associates, the future level of air travel demand, the Company's future passenger traffic and yields, the airline industry pricing environment, increased costs for security, the cost and availability of aviation insurance coverage and war risk coverage, the general economic condition of the United States and other regions of the world, the price and availability of jet fuel, the war in Iraq, the possibility of additional terrorist attacks or the fear of such attacks, concerns about SARS, Avian flu or other influenza or contagious illnesses, labor strikes, work disruptions, labor negotiations both at other carriers and the Company, low cost carrier expansion, capacity decisions of other carriers, actions of the U.S. and foreign governments, foreign currency exchange rate fluctuations, inflation and other factors discussed herein. The Company also believes that the material risks and uncertainties that could affect us as we emerge from bankruptcy include, among others, that NWA Corp.'s actual financial results may vary significantly from the projections filed with the Bankruptcy Court, that our consolidated financial statements will reflect fresh-start accounting adjustments made upon emergence from bankruptcy, that financial information in our future financial statements will not be comparable to NWA Corp.'s financial information from prior periods. Additional information with respect to these factors and other events that could cause differences between forward-looking statements and future actual results is contained in "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for 2006, as amended by Form 10-K/A filings dated April 6, 2007 and April 30, 2007. Developments in any of these areas, as well as other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, could cause the Company's results to differ from results that have been or may be projected by or on behalf of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements deal with the Company's expectations about the future and are subject to a number of factors that could cause actual results to differ materially from the Company's expectations. All subsequent written or oral forward-looking statements attributable to the Company, or persons acting on behalf of the Company, are expressly qualified in their entirety by the factors described above.
Northwest Airlines is one of the world's largest airlines with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents.
Source: Northwest Airlines
KMX
when does this take affect?
TIA
So how do you read this:
Northwest added that upon the effective date of its Plan of Reorganization, the outstanding common stock, currently traded under the ticker symbol NWACQ.PK, and preferred stock of the company will be cancelled for no consideration and therefore the company’s stockholders will no longer have any interest as stockholders in the company by virtue of their ownership of the company’s common or preferred stock prior to emergence from bankruptcy.
Sure it does - pps will increase
This company does not exists any longer. Read PR. NorthWest officials said that shares traded in pinkie land have nothing to do with New shares to be listed for the company. Be very careful here as this is only about speculation, not investment. I have realized late (or soon) as I lost 10 (or only 10%) here......Sold at 0,215. I doubt this stock will go back so high
smart man...green day tomorrow
5/8/07: Bought in today $5,500. I feel this company has great potential; and I'm looking forward to the increase in share price. glta
quickly out..:)
the news says it all...
10 years ago this was used to be 60 dollars stock.
Time has changed many things but if they keep on flying....
The market cap here is 21,5 milions now. Correct? :))
Thanks for posting that. This one might go a long way higher...
see my profile page..
if you have stock or should say old stock. in nwa after june is it worth nothing?
The key word "worth of NEW STOCK"!GLTA.
Northwest Airlines (NWACQ - Cramer's Take - Stockpickr) CEO Doug Steenland will receive a $26.6 million worth of new stock and stock options in the carrier when it emerges from bankruptcy next month
THE TRAIN IS LEAVING THE STATION HERE GUYS
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